SPX , NDX and DJX Ratio Table 8th Nov 2017
It is very probably going to be a defining day for the SPX.
Basically, it spent so long breaking up through Y2 at 2585 that it was a relief when it did so, but since last Friday all it has done it try to break back down through it with yesterday’s low 2584.35.
So, big changes today, and the move in Y2 for once eclipsing the expected rise in the NZ.
The fact Y2 now stands where the market closed means yet another of those coincidences we so appreciate but more importantly which side will today end up on?
Range: 2555 to 2605
Type: On balance just bearish
Of course, the NZ in the NDX moved yesterday, although we are sure its moves are not yet over.
Especially considering the ratios continue to strengthen below the zone, and perhaps worth noting Y2 today was the zone last week, and weaken above it.
The high yesterday was 6328.58 but whether Y2 here moved intraday it’s impossible to tell, and anyway it has been above it for so long it really should not have any issue with it anymore.
High levels of activity continue and again it looks like everyone is on a one-way bet.
Range: 6200 to 6325 or 6325 to …..
Activity: Very good
It has been a stupidly long time that the DJX has seen the inside of its NZ which just adds one more sign of normality returning to this index.
There is no precedent for how this index has been reacting to whatever economic elixir of tax or growth promised by Trump so there is no knowledge we can apply to our numbers.
However, it is also rare anything bad happens marketwise in the run up to Thanksgiving.
All we can say is that we used to use the ice-rink analogy in the NDX, where a little impetus can go a very long way, and that is certainly the case here now.
Range: 23400 to 23600
Type: On balance bearish